UK pound continues to struggle as concerns about the economy weigh. Today, UK markets are closed for the Summer Bank Holiday, but that the currency market is still open. Sterling is having trouble as expectations for the economy, and the pound, remain somewhat low.
The UK economy still is not getting a good boost. Economic numbers continue to indicate trouble. Austerity measures undertaken by the government have failed to actually reduce the deficit, and they are preventing the economy from moving forward.
Members of the Bank of England appear to be leaning toward more stimulus if things do not improve. With recent retail sales data, housing data, and other data, the BOE might need to ease a little bit more. Even though today’s moves are not big, they are moves lower. And there is not enough risk appetite out there in other markets to help support high beta currencies like the UK pound.
For now, the pound is rather soft, and is likely to remain so until better economic news is reported, and the situation becomes a little more hopeful amongst Forex traders.
At 12:59 GMT GBP/USD is down to 1.5809 from the open at 1.5820. EUR/GBP is higher, trading at 0.7923, up from the open at 0.7910. GBP/JPY is down to 124.4150 from the open at 124.4950.
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